Husk Power Systems Business Models and Experience

Electrifying the World

Power to Empower

Husk Power Systems – Who are we ?

3

Globally recognized leader in Rural Electrification using Renewable Energy

Founded in 2007, first 40kVA plant went live on Aug 15, 2007 Electrified more than 500 villages and hamlets in India, Nepal and Uganda – serving more than 300,000 people Combined generation capacity using biomass > 3 MW Attracted investment from more than 20 diverse sources – IFC, OPIC, MNRE, Shell Foundation, Acumen Fund, DFJ, LGT VP, Bamboo Finance etc. A motivated team of more than 500 people A large ecosystem of more than 20 suppliers and partners – Capacity to produce and develop Biomass based systems, Solar Systems,

Embedded electronic Systems, IT Systems, Thermodynamic Systems

CDM registration underway – Forward sale of future carbon-credits to Shell Trading

Husk Power Systems In News !!!

4

2008 Social Enterprise of

the Year

Most compelling idea to

change the world.

2010: Power to People

Husk Power Systems – Technical Achievements

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First in the world to develop a sustainable 100% rice husk gasification based electricity generation system – Cheapest Renewable Energy solution

Developed world’s cheapest pre-paid electricity meter Developed a system to remotely monitor plant performance Developed one-of-its-kind solar DC micro-grid using pre-paid charge controllers Developed a low-cost comprehensive Mgmt Information System • HR management system • Inventory management system • Operations management system • Project management system • Complaint redress system • Learning Management system

Developed a comprehensive training program • First of its kind on Biomass Gasification System O & M training • Extensive use of e-learning materials and Learning Management System

An Ecosystem for Rural Electrification using Biomass

Husk Power Systems – An Empowerment House

Ene

rgy

Envi

ron

.

Savi

ngs

Job

s

He

alth

One 25-50 kW

plant

To 200 – 600 households/shops

To run 5 – 10 irrigation pumps

To run small businesses

> $50 per house-

-hold / year,

in kerosene savings &

Savings on drugs

1 entrepreneur

3 fulltime workers

20-50 part-time workers

(mainly women)

Saves

communities from

Indoor Air

pollution that kills

over 1.5 million

people per year

Sequesters

100 – 125 tons

of CO2 per

year

Husk Power Systems – Business Models

Built Owned Operated and Maintained by HPS

HPS picks a villages, sets up a plant, procures the feedstock and manages it

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Close integration with rural communities

Immense learning opportunity

Testing ground for innovations

Increased opportunities

Huge overheads – Management challenge

Capital intensive

Limited pace of expansion

Advantages

Disadvantages

Husk Power Systems – Business Models

Built Owned and Maintained by HPS, Operated by a local entrepreneur

HPS partners with a local entrepreneur who contributes about 10% of the project cost and pays a monthly fee – HPS takes care of Training , Machine service and repair

– HPS Owns the equipment for a fixed timeframe

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Reduced Overheads

A model to showcase to the local banks

Creates a network of entrepreneurs in the ecosystem

Capital intensive

Burden of assessing the credit worthiness of entrepreneurs

Advantages

Disadvantages

Husk Power Systems – Business Models

Built and Maintained by HPS, Owned and Operated by a local entrepreneur

HPS partners with a local entrepreneur who bears the project cost – HPS takes care of Training, Machine service and repair

– Near-franchise model

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Much reduced overheads

Possibility of very fast proliferation

Very little capital required

Creates a network of entrepreneurs in the ecosystem

Need efforts to convince local banks to finance projects for the entrepreneurs

Limited connection with the end customers

Advantages

Disadvantages

Husk Power Systems – Distributed solar micro-grids

Use of pre-paid charge controllers to distribute DC to charge batteries in households / shops One micro-grid in a radius of 100 m – 10-50 households / small businesses

HPS provides everything to the customers – Lights, batteries, charge controllers, wires etc

13

Husk Power Systems – Distributed solar micro-grids

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Technically very robust

Extremely low overheads

– No need of plant operators

– No need of feedstock

– Pre-paid coupon based tariff collection

Possibility of very fast proliferation

Attractive ROI

Good only for lighting, phone charging and video applications

Advantages

Disadvantages

Bringing Rural Electrification Dreams to reality

Gyanesh Pandey

pandey@huskpowersystems.com

+91 8292610747

www.huskpowersystems.com